Suppose Policy Makers Want to Increase Y and Increase NX

question 25

Multiple Choice

Suppose policy makers want to increase Y and increase NX.Which of the following policies would most likely achieve this?

• A)an increase in government spending
• B)a real depreciation
• C)a reduction in taxes and an increase in the real exchange rate
• D)an increase in the real exchange rate

---

Definitions:

Homo Erectus

An extinct species of early human that lived throughout the Pleistocene epoch, known for its upright walking ability.

Brain Size

Refers to the volume or weight of the brain, often correlated with various aspects of intelligence and cognitive abilities in different species.

Homo Neanderthalensis

An extinct species of archaic humans that lived in Eurasia until about 40,000 years ago, known for their robust build and large cranial capacity.

Homo Erectus

An extinct species of early human that lived throughout much of the Pleistocene geological epoch, known for its upright walking ability.